Sources checked 10 November 2026. This page explains how the tax rules treat a company giving bitcoin, or the proceeds of selling it, to charity. It is not tax advice and not a recommendation to buy, sell, hold or give bitcoin. Check with the charity that it can accept bitcoin before anything is sent. If anything here conflicts with a linked source, the source wins.
Short answer
In the UK, a gift of bitcoin by a company to a charity is treated as giving neither a gain nor a loss, but the bitcoin is not money and not one of the qualifying investments, so the gift itself gets no Corporation Tax deduction. Selling first and giving the cash makes any gain taxable, while the cash gift can be deducted as a qualifying charitable donation, up to the level that reduces profits to zero. In the US, a C corporation can deduct charitable contributions up to 10 percent of taxable income, carrying any excess forward five years; the amount for bitcoin depends on how long it was held and the type of charity, and a deduction of more than $5,000 needs a qualified appraisal, not just an exchange price.
The two routes
| Give the bitcoin | Sell, then give the cash | |
|---|---|---|
| UK gain on the bitcoin | No gain and no loss on the gift to a charity. | Any gain on the sale is taxable in the usual way. |
| UK deduction | None for the bitcoin itself. | The cash is a qualifying charitable donation. |
| US amount | Depends on holding period and the type of charity; appraisal over $5,000. | The cash given, within the 10 percent limit. |
| Practical | The charity, or its processor, must be able to receive bitcoin. | Works with any charity that takes a bank payment. |
Our judgement, not a rule: which route suits a company depends on its gain, its profits and the charity, so work it through with the accountant before the board approves the gift.
Choose your country for the detail.
UK: giving the bitcoin
Section 257 of the Taxation of Chargeable Gains Act 1992 says that where an asset is given to a charity otherwise than under a bargain at arm's length, the disposal is treated as made for a consideration that gives neither a gain nor a loss, and the charity takes over the company's acquisition cost. So the company does not pay Corporation Tax on any gain in the bitcoin it gives.
Source: legislation.gov.uk: Taxation of Chargeable Gains Act 1992, section 257: gifts to charities.
A Corporation Tax deduction is a separate question. Qualifying charitable donations are qualifying payments, which must be payments of a sum of money, and amounts relating to disposals of qualifying investments. Section 204 lists those investments as listed shares and securities, authorised unit trusts, shares in open-ended investment companies, interests in offshore funds and qualifying interests in land. Bitcoin is not in the list, so a gift of bitcoin gets no deduction for its value.
Source: legislation.gov.uk: Corporation Tax Act 2010, section 190: qualifying charitable donations, legislation.gov.uk: Corporation Tax Act 2010, section 191: qualifying payments (Condition A, a sum of money), legislation.gov.uk: Corporation Tax Act 2010, section 203: certain disposals of investments to charity, legislation.gov.uk: Corporation Tax Act 2010, section 204: meaning of qualifying investment.
UK: selling and giving the cash
If the company sells the bitcoin, the gain or loss is worked out from the pool in the usual way. A gift of the cash to a charity can be deducted from total profits in the Company Tax Return for the period, in the Qualifying donations box. GOV.UK says the most a company can deduct is the amount that reduces its profits to zero; it cannot create a loss or carry the excess forward. Benefits the company or connected people receive in return must stay within set limits, and payments that are loans or distributions do not qualify.
Source: GOV.UK: Tax when your limited company gives to charity, legislation.gov.uk: Corporation Tax Act 2010, section 191: qualifying payments (Condition A, a sum of money).
See company bitcoin tax and the year end and CT600.
US: the corporate limit
For a corporation, section 170(b)(2)(A) limits total charitable deductions in a year to 10 percent of taxable income, with some exceptions not relevant here. Section 170(d)(2) lets any excess be deducted in the five succeeding taxable years, within each year's limit. S corporations and LLCs taxed as partnerships pass charitable contributions through to their owners instead; see S corporations and LLCs.
US: how much a gift of bitcoin counts for
Section 170(e)(1)(A) reduces a contribution of property by the gain that would not have been long-term capital gain if it had been sold at fair market value. So bitcoin held for one year or less counts for no more than its basis. Section 170(e)(1)(B)(ii) also reduces a contribution to most private foundations by the gain. Bitcoin held as inventory by a dealer is a different case again.
Section 170(f)(11)(C) requires a qualified appraisal for property where a deduction of more than $5,000 is claimed, and section 170(f)(11)(D) requires the appraisal to be attached to the return above $500,000. IRS Chief Counsel Advice 202302012 concluded that a cryptocurrency donation over $5,000 needs a qualified appraisal, and that relying on an exchange price instead did not meet the reasonable cause exception. Noncash contributions are reported on Form 8283.
Source: govinfo (US Code): 26 U.S.C. 170: charitable contributions, including (b)(2) corporations, (d)(2) carryover, (e)(1) reductions and (f)(11) appraisals, IRS: Chief Counsel Advice 202302012: qualified appraisal required for cryptocurrency contributions over $5,000 (PDF), IRS: About Form 8283, Noncash Charitable Contributions.
Selling first and giving the cash means the company recognises any gain on the sale and deducts the cash, within the same 10 percent limit. See bitcoin for US C corporations.
Doing it carefully
- Board approval. Minute the gift, the amount and the reason. Directors must act in the way they consider most likely to promote the success of the company. See directors' duties.
- Check the charity. Confirm its registration, and ask how it receives bitcoin. Many use a processor that converts on receipt. Get the receiving address from the charity's own channel and confirm it separately.
- Test, then send. Follow the usual address checks and approvals from the company multisig. See sending bitcoin safely.
- Get a receipt. Ask the charity for a written acknowledgement showing the date and what it received.
- Record it. Keep the transaction ID, the value at the time, the cost taken from the UK pool or the US lot, and, in the US, the appraisal.
- Watch connected benefits. If the company, a director or their family gets something back from the charity, check the benefit limits first.
Source: legislation.gov.uk: Companies Act 2006, section 172: duty to promote the success of the company.
Common questions
Does the UK charity pay tax when it sells?
Charities have their own exemptions. That is the charity's question, and it is the reason it takes over the company's cost under section 257.
Can the company deduct the bitcoin's market value in the UK?
No. The market value deduction is for money, qualifying shares and securities and land, not bitcoin.
Is an exchange price enough for the US appraisal?
Not for a deduction of more than $5,000, according to the Chief Counsel Advice above.
Common mistakes
- Claiming a UK deduction for the value of bitcoin given.
- Assuming the US deduction is the market value for bitcoin held a year or less.
- Skipping the qualified appraisal for a US gift over $5,000.
- Sending to an address received by email without checking it with the charity.
- No board minute or charity receipt.
Read next
- Company bitcoin tax, gains, losses and the pool.
- Related-party transactions, when an insider is involved.
- Selling and rebalancing, selling with a policy.
- Sending bitcoin safely, checks before any send.
- Bitcoin by business type, including charities.
Sources
Primary sources only. Each link was checked on 10 November 2026. Rules change, so confirm the current version with your adviser.
- legislation.gov.ukTaxation of Chargeable Gains Act 1992, section 257: gifts to charities
- legislation.gov.ukCorporation Tax Act 2010, section 190: qualifying charitable donations
- legislation.gov.ukCorporation Tax Act 2010, section 191: qualifying payments (Condition A, a sum of money)
- legislation.gov.ukCorporation Tax Act 2010, section 203: certain disposals of investments to charity
- legislation.gov.ukCorporation Tax Act 2010, section 204: meaning of qualifying investment
- GOV.UKTax when your limited company gives to charity
- govinfo (US Code)26 U.S.C. 170: charitable contributions, including (b)(2) corporations, (d)(2) carryover, (e)(1) reductions and (f)(11) appraisals
- IRSChief Counsel Advice 202302012: qualified appraisal required for cryptocurrency contributions over $5,000 (PDF)
- IRSAbout Form 8283, Noncash Charitable Contributions
- legislation.gov.ukCompanies Act 2006, section 172: duty to promote the success of the company
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